Two strategic pillars of Resolution No.68: Private Sector and Innovation

This shift is not only significant in how the private sector is named, but also in the accompanying policy structure: it grants the private sector a central position, while on the other, it designs mechanisms for its growth based on innovation, intellectual property, and advanced technology.

Throughout the country’s journey of renewal and development, every strategic policy decision of the Party has represented a historic milestone, opening up new directions for the socio-economic landscape. The Politburo’s Resolution No.68-NQ/TW on private sector development is one such milestone—not only a demonstration of strong political will but also an institutional breakthrough crucial to the modernisation of Viet Nam’s national economy.

A timely, strategic, and visionary decision

Over the past three decades, the private sector has grown steadily, creating jobs, attracting investment, fostering innovation, and boosting national capacity. However, in practice, institutional, legal, and administrative barriers—along with enduring perceptual biases—continue to hinder sustainable and equitable development of this sector. In this context, the Politburo’s issuance of Resolution No.68, with its guiding principle of "robustly developing the private sector on the foundation of socialist rule of law," stands out as a timely, sound, and strategic decision.

For the first time, the Party unequivocally affirms that the private sector is one of the key engines of the national economy. This reflects a consistent continuation of reform thinking since the 6th National Congress and signals the Party’s firm commitment to fostering all economic sectors equally, within the rule of law and in pursuit of the people’s and nation’s common interests.

Resolution No.68 is not merely a political declaration; it is a blueprint for a development model grounded in endogenous strength, innovation, and high-quality integration. A look at the frequency of key terms in the document reveals two prominent and interconnected themes: the first includes “private economy,” “private enterprises,” “small and medium-sized enterprises,” and “entrepreneurs”; the second includes “innovation,” “intellectual property,” “digital transformation,” and “science and technology.” These are not isolated concepts but twin pillars that collectively underpin a comprehensive development strategy: the subjects and the means of development.

With 111 mentions, the phrase “private economy” and its variants underscore a central theme—placing the private sector at the heart of production, business activity, job creation, and economic growth. The resolution not only affirms this role but outlines a series of concrete requirements: guaranteeing property rights, freedom of enterprise, fair competition, and equal access to resources such as land, credit, data, and market opportunities. Entrepreneurs are no longer viewed as “subjects of management” but are recognised as “soldiers on the economic front,” worthy of recognition, protection, and encouragement.

A modern development philosophy with long-term vision

The Party also clearly acknowledges that the aspirations and efforts of the private sector alone are not sufficient. In a fiercely competitive global environment, it is innovation, technology, and intellectual property that determine value hierarchies. Therefore, the resolution mentions “innovation,” “intellectual property,” “digital transformation,” and “science and technology” a total of 42 times. More than just a call to action, the resolution translates these themes into specific policies: allowing a 20% deduction on research and development expenses, granting corporate income tax incentives for innovative startups, subsidising intellectual property registration costs domestically and internationally, and encouraging technology transfer from foreign-invested enterprises (FDIs) to the domestic private sector. Legal thinking is also evolving: for the first time, the resolution introduces the concept of a “sandbox”—a controlled policy-testing environment for emerging technologies—paving the way for new business models involving digital platforms, virtual assets, intangible assets, artificial intelligence, e-commerce, and digital ecosystems.

Connecting these two policy pillars is a modern development philosophy: sustainable growth must be built on the internal strengths of society, epitomised by the private sector, and it must rely on continual innovation—protected by intellectual property institutions and supported by legal tools. A small enterprise can go global if it owns core technologies, embraces creativity, builds a strong brand, and effectively leverages intangible assets. An economy can integrate meaningfully into the world if its private enterprises are competitive across global value chains.

Herein lies a redefinition of the State’s role: no longer merely a regulator, but a facilitator and enabler. The resolution calls for a shift from pre-licensing to post-inspection oversight, removal of administrative barriers, digitisation and transparency of procedures, a 30% reduction in compliance costs, and freedom to operate in all sectors not expressly prohibited by law. At the same time, the State is tasked with safeguarding legitimate rights, promoting public-private partnerships, facilitating data sharing, supporting startups, and encouraging innovation financing.

The most valuable aspect of Resolution No.68 lies in its long-term vision. The aim is not simply to have two million enterprises contributing over 60% of GDP by 2045. More importantly, it seeks to shape a Vietnamese private sector identity: dynamic, innovative, socially responsible, law-abiding, and internationally competitive. Such an outcome cannot be achieved by enterprises or the State alone—it requires coordination across an entire development ecosystem, where policy thinking, legal institutions, social resources, and human intellect work in harmony.

When “private sector” and “innovation” are no longer mentioned separately but jointly featured in a strategic resolution, it signals that they have become inseparable elements of Viet Nam’s economic future. Sound policies will not only empower private enterprises to generate wealth—they will also help strengthen the nation. And only when innovation is protected, intellectual property is respected, and creativity is genuinely encouraged, will the private sector have the space to grow, the drive to break through, and the confidence to walk alongside the nation for the long term.

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